Tilladock loses $3 billion in three months, and shares are down 24%

Teladoc Health Inc. shares fell. By more than 24% in after-hours trading Thursday after the telehealth company received another multi-billion dollar vulnerability fee, helping bring its total losses for the first six months of the year to nearly $10 billion.

Teladoc TDOC,
+ 7.59%
Executives disclosed a $3.0 billion impairment charge on goodwill during the second quarter after collecting $6.3 billion in the first quarter. On the company’s earnings call, Mala Murthy, chief financial officer, said the latest charges “arised from a decline in Teladoc Health’s share price” and were impacted by “a higher discount rate and a lower market multiplier for related peer group of high-growth digital healthcare companies.”

Taking into account a $3.0 billion impairment, the company reported a second-quarter net loss of $3.1 billion, or $19.22 per share, compared to a loss of $133.8 million, or 86 cents per share, in the previous year’s second quarter. The consensus of FactSet was a loss of 61 GAAP cents per share.

Teladoc also reported adjusted EBITDA of $46.7 million, down from $66.8 million a year earlier, while analysts had expected $45.3 million.

Revenue increased to $592.4 million from $503.1 million, while analysts expected $588 million.

“While we continue to see increased uncertainty in the macroeconomic backdrop, we remain confident in our ability to execute in line with our strategy to deliver a unified care experience that we believe Teladoc Health is the only one that has the breadth and scope to achieve,” said CEO Jason Gurevich. In a statement.

He added on the earnings call that the company’s Primary360 business was “an important bright spot in terms of commercial momentum.”

At the same time, he noted some pressure on the company’s product BetterHelp, which offers online therapy. The performance of this business was toward the low end of the company’s expectations.

“We continue to see smaller private competitors pursuing what we believe are low- or no-return customer acquisition strategies to establish market share,” Gurevich continued. “Although we do not see this as sustainable, it is difficult to predict how long this dynamic will last.”

Furthermore, a “weak economic environment and declining consumer sentiment” is likely to affect BetterHelp, with Gurevich noting a “modest gradual decline in return on advertising spend” which may be the result of more cost-conscious attitudes among consumers.

For the third quarter, Teladoc executives expect revenue between $600 million and $620 million. FactSet’s consensus was $617 million.

The company’s stock has lost 53% so far this year as the S&P 500 SPX,
+ 2.62%

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